Yakov_Oskanov | Envato ElementsNot long ago, buying a new car followed a somewhat predictable path. Do online research, pick a trim level, choose your options, go for a test drive, and sign the paperwork. Once you pull away from the dealership, everything on that window sticker is yours. Heated seats worked. Remote start worked. The features and packages you paid for were yours for as long as you owned the vehicle.That was the deal. But that deal is changing. And most buyers don't realize it until much further down the road.Automakers are increasingly locking features behind monthly subscription fees, including things already physically built into the car you just purchased. The hardware is there. The wiring is there. Yet the software simply won't activate unless you keep paying.AdvertisementAdvertisementAccording to S&P Global Mobility, connected and subscription service revenue is expected to grow from roughly $6 billion in 2024 to around $15 billion by 2030. That money is coming from your pocket, and the industry is counting on you not to notice until the free trial runs out.How Silicon Valley's business model invaded your drivewayThe subscription model didn't start with cars, but it found themBMWThe logic automakers use is borrowed directly from the tech industry. As vehicles became more software-defined, it was perhaps inevitable that automakers would look at what Apple, Netflix, and Spotify had built and ask themselves the same question: why sell something once when you can charge for it every month?What makes it particularly frustrating is that, as noted above, the hardware is already installed in the vehicle. The feature would work just fine on its own, but automakers have decided that activating it requires an ongoing payment.Unlike your phone, which you may replace every few years, a car is something most people expect to own for a decade or more. Any subscription fees associated with the vehicle over the course of such a long ownership cycle can yield high profits for vehicle manufacturers. In effect, these monthly subscription models are attractive to automakers as a source of recurring revenue, especially as Americans are keeping their vehicles for longer and longer.AdvertisementAdvertisementBMW was among the first to test this business model when, starting with its 2019 model year vehicles, it charged $80 per year for Apple CarPlay, a feature standard on vehicles costing a fraction of a BMW. The backlash was swift and public, to the point that BMW reversed course by December of that same year.Then came the heated seats controversy (or, rather, the outright debacle) in 2022. At that time, BMW had introduced its ConnectedDrive functions-on-demand program in global markets, including the United Kingdom, Germany, and South Korea. The program charged owners around $18 per month to turn on their heated seats. The reaction again was swift and widespread, from both automotive industry veterans and everyday consumers. Many took their frustrations to social media.By September 2023, BMW discontinued the heated seat subscription, with company executives later admitting that heated seats were "probably not the best way to start" with subscriptions.Even though the backlash was bigger than BMW expected, they are still testing the waters with paid features. Today, it charges roughly between $5 and $20 per month for features like remote start, a drive recorder, and its Driving Assistant Plus system, depending on the model and generation. However, BMW is not alone.The features going behind a paywallRemote start, driver assistance, and horsepowerOn 2018 and later Toyota models, starting your vehicle remotely via a smartphone or smartwatch requires an active Remote Connect subscription, which runs $8 per month or $80 per year after the free trial expires. Even the physical key fob's short-range remote start can be linked to this ecosystem on many Toyotas. Depending on the model, Remote Connect can be offered as part of a trial for anywhere from one to three years after a new vehicle purchase.AdvertisementAdvertisementThe subscription conversation gets more nuanced when it comes to advanced driver assistance features. GM's Super Cruise and Ford's BlueCruise are hands-free highway driving systems (pictured above) that both require ongoing subscriptions after a free trial period. At the time of this writing, Super Cruise runs $39.99 per month, while BlueCruise costs $49.99 per month, though Ford has introduced a one-time purchase option for those who want to avoid a recurring fee.These systems arguably have a stronger case for the subscription model than remote start or heated seats, since they rely on continuously updated LiDAR maps, cloud connectivity, and regular over-the-air software improvements to function safely. However, when new vehicle prices have reached their highest point in history, consumers have a right to be irritated when they are asked to pay for something they believe would be part of the vehicle’s original purchase price.To this end, the line between what is reasonable to charge for and what isn't gets blurry. In the UK, Volkswagen began offering ID.3 owners a subscription to unlock the car's full horsepower, charging around $22 per month for a 20-horsepower bump that the engine was already capable of producing from the factory. While this particular program has not come to North America, it once again signals where the industry's mindset is headed.Lawmakers are pushing backA step in the right direction, with notable exceptionsVehicle manufacturers will likely continue down the path of paywalling more features and services, especially as vehicles become more software-defined. However, the practice won’t be without its uphill battles as it has drawn the attention of some lawmakers.AdvertisementAdvertisementNew York's Senate Bill S5708, which passed both chambers of the state legislature and was awaiting Governor Kathy Hochul's signature, would make it illegal for automakers and dealers to charge subscription fees for features that rely on hardware already installed in the vehicle. Similar legislation has been proposed in New Jersey and Massachusetts, though neither has been signed into law as of this writing.The New York bill does include a notable exemption for features that require ongoing data, software support, or cloud connectivity from the automaker. In effect, systems like Super Cruise and BlueCruise would likely be excluded if the bill becomes law.While none of this solves the problem nationally, it does signal that consumer frustration has reached a level that elected officials have taken notice. New York State Senator James Skoufis, who sponsored the bill, put it plainly: "If the automaker is building a feature into a car, for as long as cars have been invented, you've never had to pay a subscription to access those features."What you can doIf you are in the market for a new vehicle, ask the dealership about subscription services, what features they enable, and the fees that might be associated with them. Ask how long the trial subscription is specifically for the vehicle you are considering and what happens when it ends. The best time to understand what you are agreeing to is before you sign, not after the free trial runs out and a feature you rely on suddenly stops working.
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